EU banks must disclose on ESG, may get green/brown risk capital weights

The European Union has taken a step towards using the bank capital risk weighting system to favour green assets and discourage ‘brown’ unsustainable lending — one of the most controversial issues on the sustainable finance policy agenda.

By Jon Hay

04 Dec 2018

It will also ramp up regulatory oversight of banks on these issues.

The EU’s Council of Finance Ministers (Ecofin) on Tuesday approved three amendments, put forward by the European Parliament, to the Banking Package which has been grinding its way through the EU legislative process for two years.